Statutory Sick Pay Scheme
Following an announcement by the government in June 2021 of plans to establish a statutory sick pay (SSP) scheme, a draft Sick Leave Bill was published on 5 November 2021. On 13 July 2022, the Bill was passed by the Oireachtas. And on 20 July 2022, the Sick Leave Act 2022 became law.
From 1 January 2023 the scheme came into effect and will be rolled out over four years. Under the legislation, employers are obliged to provide a minimum number of paid sick days annually from 2023.
The new legislation gives employees the right to a minimum period of paid leave if they become sick or sustain an injury that makes them unfit for work. Both full and part-time employees can avail of paid leave under the scheme, which will be rolled out in four phases.
The plan for paid sick leave is as follows:
· 3 sick days per calendar year in 2023;
· 5 days per calendar year in 2024;
· 7 days per calendar year in 2025;
· 10 days per calendar year in 2026.
Statutory sick leave days may be consecutive days or non-consecutive days. The legislation does not specify the amount of statutory sick pay; however, it provides that an employer must pay 70% of a worker’s wage to a maximum of €110 a day. An employee must obtain a medical certificate to avail of this statutory sick pay, and the entitlement is subject to the employee having worked for their employer for a minimum of 13 weeks. The leave must be in relation to a day or days when an employee would ordinarily work but is incapable of working due to illness or injury.
As an employer, you must keep proper records for each employee. The records must be maintained for four years and include information in relation to each employee who availed of sick leave.
The following information must be included in the records:
The employee’s period of employment.
The dates of statutory sick leave in respect of each employee.
The rate of statutory sick leave payment in relation to each employee.
An employer who fails to maintain accurate records may be convicted and subject to a fine of up to €2,500.
In certain circumstances, an employer whose business is experiencing severe financial difficulties may apply to the Labour Court for an exemption to pay sick leave. If an exemption is granted, it will be for a minimum of three months and up to one year.
As an employer, you’re obliged to ensure that employees who express their intention to take or do take statutory sick leave aren’t treated differently. An employee who avails of their right to statutory sick leave should not be penalised for their absence. Additionally, any absence in relation to SSP should not affect any other employment rights – whether statutory or contract.
If you already provide for paid sick leave through your employment contract or through collective sector or union agreements, you need to review the contracts in light of the new legislation. The Sick Leave Act states that if an existing provision for paid sick leave in an employment contract is as favourable or more favourable than the statutory provision, then the employer’s obligation under the legislation is met. However, if a provision for sick leave in your standard employment contract is less favourable than the entitlement provided under the legislation, it will be “deemed to be so modified so as to be not less favourable”.
If you have any questions on how to implement new legislation please contact our Payroll department Directly.